Retail Snapshot Q4 2016AHMEDABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter.
Despite a short-term blip caused by the recent currency
demonetization, a normal monsoon season and impending pay
hikes for government employees are likely to spur a recovery in
consumer sentiments. In October, the Consumer Price Index
(CPI), a key price indicator of the Reserve Bank of India (RBI) for
policy purposes, was seen at 4.2% - the lowest in 14 months –
on the back of lower food inflation. Consequently, there were
expectations of a cut in the Repo Rate by the RBI in its policy
revision in December, which however, did not take place given
the slowdown in economic activity. According to the 2016 Global
Retail Development Index, which ranks top 30 developing
countries for retail investment worldwide, India has jumped 13
positions from last year to rank 2nd. The organised retail space
(malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class,
coupled with the opportunity to list retail assets under REITs.
Market OverviewNo new mall supply; limited leasing activity in malls.
Ahmedabad did not witness any new mall supply during the
fourth quarter of 2016. No major transaction was recorded in
malls during the quarter. This could be partly attributed to limited
availability of good quality spaces in malls. Amidst stable
inventory levels and limited leasing activity in malls, the city’s
vacancy level remained consistent at 31% at the end of 2016.
Rental values also remained stable across all submarkets.
Limited transaction activity on main streets; rentals
remained stable. Retailers from food & beverage (F&B) and
lifestyle categories preferred mixed-use developments to set up
their retail outlets. Further, quick-service restaurants are looking
for quality spaces on prime main streets such as S.G. Highway
and Prahladnagar. Rentals maintained status-quo during the
quarter.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: CSO, RBI, Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
C.G. Road 150 25 27 0.0% 0.0%
Law Garden 120 20 21 0.0% 0.0%
Satellite Road 150 25 27 0.0% 0.0%
Maninagar 140 24 25 0.0% 0.0%
Prahladnagar 130 22 23 0.0% 0.0%
S.G. Highway 100 17 18 0.0% 0.0%
MALLS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Vastrapur 165 28 29 0.0% 0.0%
S.G. Highway 100 17 18 0.0% 0.0%
Drive-in Road 95 16 17 0.0% 0.0%
Kankaria Lake 65 11 11 0.0% 0.0%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
Retail Snapshot Q4 2016AHMEDABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart Goel
Senior Director
Research Services, India
Tel: +91 80 40465555
OutlookLeasing activity expected to gain momentum in main
streets; rentals anticipated to rise in select main streets.
Rise in enquiries from F&B retailers on prime main streets at
S.G. Highway and Prahladnagar are anticipated to strengthen
rental values in the upcoming quarter.
Mall rental values likely to be consistent. Owing to
restrained enquiries for spaces in malls, leasing activity is not
expected to show much momentum. Rental values are also
expected to remain stable in the upcoming quarter.
SIGNIFICANT PROJECT UNDER CONSTRUCTION
Property Location Square Feet Completion Date
Applewoods Galleria Bopal 160,000 Q2 2017
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Turquoise C.G. Road Reliance Retail 10,000
Shilp Aaron S.G. Highway Creamistry 5,000
Retail Snapshot Q4 2016BENGALURU, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter.
Despite a short-term blip caused by the recent currency
demonetization, a normal monsoon season and impending pay
hikes for government employees are likely to spur a recovery in
consumer sentiments. In October, the Consumer Price Index
(CPI), a key price indicator of the Reserve Bank of India (RBI)
for policy purposes, was seen at 4.2% - the lowest in 14 months
– on the back of lower food inflation. Consequently, there were
expectations of a cut in the Repo Rate by the RBI in its policy
revision in December, which however, did not take place given
the slowdown in economic activity. According to the 2016 Global
Retail Development Index, which ranks top 30 developing
countries for retail investment worldwide, India has jumped 13
positions from last year to rank 2nd. The organized retail space
(malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class,
coupled with the opportunity to list retail assets under REITs.
Market OverviewNew supply deferred due to delays in construction. Of the
approximately 2.7 msf of new mall supply scheduled for
completion in the fourth quarter, approximately half has been
deferred to the next couple of quarters, due to delays in
construction. Further, the launch of select malls totaling 1.3 msf
of space in Electronic City has been put on hold due to lack of
demand from retailers.
Vacancy rate marginally increased in Q4. Vacancy rate of
malls increased to 12.5% at the end of the quarter, from 11.7%
in the previous quarter. The increase was largely due to an
electronics retailer’s exit from a mall near CBD submarket.
Rentals across all major locations remained steady in Q4
2016. Rentals across the city remained stable in the quarter in
the absence of new supply and stable demand.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: CSO, RBI, Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
MG Road 240 41 42 0.0% 0.0%
Brigade Road 280 47 50 0.0% -1.8%
Commercial Street 300 51 53 0.0% 0.0%
Indiranagar 100 Feet
Road190 32 34 0.0% 0.0%
Jayanagar 4th Block,
11th Main 330 56 58 0.0% 0.0%
Sampige Road,
Malleswaram 120 20 21 0.0% 0.0%
Koramangala 80 Feet
Road120 20 21 0.0% 0.0%
Vittal Mallya Road 270 46 48 0.0% 0.0%
New BEL Road 150 25 27 0.0% 0.0%
Marathahalli Junction 160 27 28 0.0% 0.0%
Kamanahalli Main
Road150 25 27 0.0% 3.4%
HSR Layout 27th
Main140 24 25 0.0% 0.0%
MALLS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Koramangala 420 71 74 0.0% 0.0%
Magrath Road 375 63 66 0.0% 0.0%
Cunningham Road 90 15 16 0.0% 0.0%
Mysore Road 65 11 11 0.0% 0.0%
Vittal Mallya Road 400 68 71 0.0% 0.0%
Whitefield 120 20 21 0.0% 0.0%
Rajarajeshwarinagar 80 14 14 0.0% 0.0%
Malleswaram 280 47 50 0.0% 0.0%
Bannerghatta Road 195 33 34 0.0% 0.0%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is
quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
Retail Snapshot Q4 2016BENGALURU, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
OutlookNew mall supply expected to increase vacancy. Three malls
totaling approximately 1.5 msf of space are expected to become
operational over the next two quarters. Although, these will lead
to a marginal increase in overall vacancy, rentals will not be
impacted directly.
Rental renegotiation in high streets expected. Sales of luxury
items have been impacted due to the recent demonetization,
citing which retailers may push for a renegotiation of rentals in
high streets over the next few months.
SIGNIFICANT PROJECT UNDER CONSTRUCTION
Property Location Square Feet Completion Date
RMZ Galleria Yelahanka 500,000 Q1 2017
Vega City MallBannerghatta
Road420,000 Q2 2017
Forum
ShantiniketanWhitefield 600,000 Q2 2017
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Virginia Mall Varthur Road Pantaloons 6,000
Virginia Mall Varthur Road Paradise Biriyani 5,000
Independent Jayanagar Lalitha Jewellery 12,000
Retail Snapshot Q4 2016CHENNAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter.
Despite a short-term blip caused by the recent currency
demonetization, a normal monsoon season and impending pay
hikes for government employees are likely to spur a recovery in
consumer sentiments. In October, the Consumer Price Index
(CPI), a key price indicator of the Reserve Bank of India (RBI) for
policy purposes, was seen at 4.2% - the lowest in 14 months –
on the back of lower food inflation. Consequently, there were
expectations of a cut in the Repo Rate by the RBI in its policy
revision in December, which however, did not take place given
the slowdown in economic activity. According to the 2016 Global
Retail Development Index, which ranks top 30 developing
countries for retail investment worldwide, India has jumped 13
positions from last year to rank 2nd. The organised retail space
(malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class,
coupled with the opportunity to list retail assets under REITs.
Retail Market OverviewLack of supply and steady momentum in leasing brings
down vacancy rate. The city did not witness any new mall
supply during the fourth quarter as the approximately 0.9 million
square feet (msf) scheduled for completion in the current quarter
was deferred to 2017. Malls witnessed steady leasing during the
quarter led by apparels, food & beverage (F&B) and computer
hardware segments. Therefore, the vacancy level declined by
0.7 percentage point to 7.6% at the end of the quarter. Leading
international retailer, H&M, leased space in one of the prominent
malls in the CBD. The Chocolate Room and Acer were some of
the other brands that took up spaces in malls during the quarter.
Apparel, accessories and electronics retailers drove
demand for space in main streets. Main street locations of
Velachery and Anna Nagar observed robust leasing, primarily by
domestic brands such as Reliance Digital, Reliance Trends,
Lenskart, Sting, and Limelite.
Mall and main street rentals remained unchanged. Mall and
main street rentals remained stable owing to limited leasing
activity amidst low availability of quality spaces.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: CSO, RBI, Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Nungambakkam
High Road150 25 27 0.0% 0.0%
Khadar Nawaz
Khan Road210 36 37 0.0% 0.0%
Cathedral Road –
R.K. Salai160 27 28 0.0% 7.0%
Usman Road -
South130 22 23 0.0% 0.0%
Usman Road -
North140 24 25 0.0% 0.0%
Adyar Main Road 150 25 27 0.0% -6.0%
Anna Nagar 2nd
Avenue150 25 27 0.0% 0.0%
Purasawalkam High
Road130 22 23 0.0% 0.0%
Pondy Bazar 160 27 28 0.0% 0.0%
Velachery 130 22 23 0.0% 0.0%
Ambattur (MTH
Road)*120 20 21 0.0% 0.0%
MALLS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Chennai – CBD** 345 58 61 0.0% 0.0%
Chennai –
Western**300 51 53 0.0% 0.0%
Chennai – South** 330 56 58 0.0% 0.0%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
*Newly Added in 2015
**Select shopping malls have been considered for calculation of malls rentals. Luxury spaces
not included
Retail Snapshot Q4 2016CHENNAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services, India
Tel: +91 80 40465555
OutlookNew mall space expected to be added in next quarter. The
market is likely to witness addition of approximately 0.5 msf of new
mall supply in the next quarter in Velachery. With this, new supply
will be seen in the city after a gap of 12 quarters. Addition of higher
supply in the subsequent quarters, primarily in the peripheral
locations, will drive the overall vacancy upwards. Mall rentals are
likely to remain range-bound due to steady demand by retailers.SIGNIFICANT PROJECTS UNDER CONSTRUCTION
Property Location Square Feet Completion Date
The Palladium Velachery 250,000 Q1 2017
Ozone
Metrozone Mall
Anna Nagar 1,000,000 Q2 2017
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Express Avenue Royapettah H&M 34,000
Independent Building VelacheryReliance
Digital8,000
Retail Snapshot Q4 2016DELHI-NCR, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter.
Despite a short-term blip caused by the recent currency
demonetization, a normal monsoon season and impending pay
hikes for government employees are likely to spur a recovery in
consumer sentiments. In October, the Consumer Price Index
(CPI), a key price indicator of the Reserve Bank of India (RBI) for
policy purposes, was seen at 4.2% - the lowest in 14 months –
on the back of lower food inflation. Consequently, there were
expectations of a cut in the Repo Rate by the RBI in its policy
revision in December, which however, did not take place given
the slowdown in economic activity. According to the 2016 Global
Retail Development Index, which ranks top 30 developing
countries for retail investment worldwide, India has jumped 13
positions from last year to rank 2nd. The organised retail space
(malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class,
coupled with the opportunity to list retail assets under REITs.
Market OverviewVacancy declines, no new supply infusion. Steady leasing by
retailers amidst no new supply led to vacancy rate declining to
16% at the end of the quarter. Apparel and home décor retailers
dominated leasing activity in malls with brands such as Yepme,
Armani Exchange, Madame, and Casa Pop actively leasing
space during the quarter.
Mall rents remained stable across most submarkets. Mall
rentals maintained status quo across all submarkets owing to
steady demand from retailers. Despite witnessing significant
interest from retailers, even prominent malls in South Delhi and
Noida did not witness any change in the ongoing market rentals.
Select main streets witness increase in rents. Most of the
main street locations witnessed stable rents during the quarter
owing to stable demand. However, DLF Galleria and Sector 29 in
Gurgaon witnessed an increase of 6-11% in rentals over the
previous quarter spurred by demand from retailers. Apparel, food
& beverage (F&B) and beauty and healthcare retailers such as
Kidsberry, Wrangler, Pantaloons, Keventers, Burger King, Taco
Bell, Geetanjali Salon leased retail space across main streets
during the quarter.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Khan Market 1,250 212 221 0.0% 0.0%
South Extension I &
II700 118 124 0.0% -6.7%
Lajpat Nagar 250 42 44 0.0% 11.1%
Connaught Place 950 161 168 0.0% 11.7%
Greater Kailash I, M
Block460 78 81 0.0% -16.4%
Rajouri Garden 225 38 40 0.0% 12.5%
Punjabi Bagh 225 38 40 0.0% 12.5%
Karol Bagh 375 63 66 0.0% 0.0%
Kamla Nagar 400 68 71 0.0% 0.0%
Dwarka 450 76 80 0.0% 5.9%
Vikas Marg 175 30 31-
12.5%-12.5%
DLF Galleria
(Gurgaon)850 144 150 6.3% 13.3%
Sector 29 (Gurgaon) 250 42 44 11.1% 31.6%
Sector 18 (Noida) 200 34 35 0.0% -11.1%
MALLS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
South Delhi 600 102 106 0.0% 20.0%
West Delhi 325 55 57 0.0% 0.0%
Gurgaon 375 63 66 0.0% 0.0%
Noida 380 64 67 0.0% 0.0%
Greater Noida 125 21 22 0.0% 0.0%
Ghaziabad 200 34 35 0.0% 0.0%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
Retail Snapshot Q4 2016DELHI-NCR, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director Research Services, India
Tel: +91 80 40465555
OutlookAbout one million square feet mall space expected to be
added in 2017. One mall each in Greater Noida and New Delhi
are likely to become operational during the first half of 2017.
Despite the new supply expected, mall rentals are expected to
maintain status-quo in the next quarter owing to stable demand.
Main street rents likely to maintain status quo. Rentals for
most main streets are expected to remain range-bound, except
for pockets in Gurgaon, like Sector 29, which might witness a
slight surge in rentals, led by continued interest from retailers
coupled with limited availability of quality retail spaces.
SIGNIFICANT PROJECT UNDER CONSTRUCTION
Property Location Square Feet Completion Date
Omaxe Connaught
PlaceGreater Noida 850,000 Q1 2017
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Mall of India Noida Yepme 7,600
Standalone Punjabi Bagh Geetanjali Salon 3,000
Standalone Connaught Place Skechers 2,800
Select City Walk SaketArmani
Exchange1,720
Retail Snapshot Q4 2016HYDERABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
Economy
The GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter. Despite a
short-term blip caused by the recent currency demonetization, a
normal monsoon season and impending pay hikes for government
employees are likely to spur a recovery in consumer sentiments. In
October, the Consumer Price Index (CPI), a key price indicator of the
Reserve Bank of India (RBI) for policy purposes, was seen at 4.2% -
the lowest in 14 months – on the back of lower food inflation.
Consequently, there were expectations of a cut in the Repo Rate by
the RBI in its policy revision in December, which however, did not
take place given the slowdown in economic activity. According to the
2016 Global Retail Development Index, which ranks top 30
developing countries for retail investment worldwide, India has
jumped 13 positions from last year to rank 2nd. The organised retail
space (malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class, coupled
with the opportunity to list retail assets under REITs.
Retail Market Overview
No fresh mall supply during the quarter. Mall supply of nearly 1.5
msf, which was anticipated during the quarter, has been delayed by 6
to 12 months owing to construction delays. With this postponement,
the city has not witnessed any new mall supply for nine consecutive
quarters.
Vacancy rate increased marginally due to a churn in tenants.
Limited availability of quality space in malls led to subdued leasing
activity during the quarter. The overall vacancy rate increased
marginally to 4.6% at the end of the quarter, as a few retailers exited
prominent malls in Madhapur and Kukatpally submarkets.
Main streets are attracting higher leasing activity than malls. The
F&B sector accounted for the highest share in leasing in main streets,
drive-in formats and IT Parks during the quarter. Most of the F&B
retailers preferred standalone spaces on main streets with large
parking capacity, due to which, the main streets of Jubilee Hills,
Gachibowli and Kothaguda witnessed higher leasing activity during
the quarter. Some of the retailers that are expected to set up stores in
main streets include KFC, Buffalo Wild Wings, Mamagoto, etc.
Rentals continue to remain flat during the quarter. Limited
availability of quality space in malls led to subdued leasing in malls,
thereby keeping rentals flat during the quarter. Similarly, rentals
remained stable in main streets as leasing was stable.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: CSO, RBI, Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
M.G. Road 110 19 19 0.0% 0.0%
S.P.
Road/Begumpet110 19 19 0.0% 0.0%
Raj Bhavan
Road/Somajiguda90 15 16 0.0% 0.0%
Banjara Hills 130 22 23 0.0% 0.0%
Abids 110 19 19 0.0% 0.0%
Himayathnagar 140 24 25 0.0% 0.0%
Punjagutta 155 26 27 0.0% 0.0%
Ameerpet 125 21 22 0.0% 0.0%
Jubilee Hills 125 21 22 0.0% 0.0%
Kukatpally NH.9 140 24 25 0.0% 0.0%
A.S. Rao Nagar 120 20 21 0.0% 0.0%
Madhapur 100 17 18 0.0% 0.0%
MALLS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
NTR Gardens 100 17 18 0.0% 0.0%
Himayathnagar 150 25 27 0.0% 0.0%
Banjara Hills 260 44 46 0.0% 0.0%
Madhapur 235 40 42 0.0% 0.0%
Panjagutta 140 24 25 0.0% 0.0%
Somajiguda 120 20 21 0.0% 0.0%
Kukatpally 180 30 32 0.0% 0.0%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
Retail Snapshot Q4 2016HYDERABAD, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: + 91 80 4046 5555
OutlookVacancy rate likely to be stable in the next quarter. No new
malls are expected to become operational in the next quarter.
The vacancy rate is, therefore, expected to be stable during Q1
2017.
Rental values expected to remain stable. Rentals in main
streets and malls have remained largely stable in the city over
the last two years. With moderate leasing activity and no supply
of malls, rentals are expected to remain flat in the next quarter
too.
SIGNIFICANT PROJECT UNDER CONSTRUCTION
Property Location Square Feet Completion Date
Sattva Salarpuria
Food Court
Gachibowli 300,000 Q4 2017
Maruthi Infinity
Mall
Chandanagar 225,000 Q2 2017
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Inorbit Mall Madhapur H&M 20,000
Kothaguda
Junction
Kothaguda Mamagoto
restaurant
17,000
Highstreet Jubilee Hills Road
no 36
Buffalo Wild
Wings
15,000
Retail Snapshot Q4 2016KOLKATA, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter.
Despite a short-term blip caused by the recent currency
demonetization, a normal monsoon season and impending pay
hikes for government employees are likely to spur a recovery in
consumer sentiments. In October, the Consumer Price Index
(CPI), a key price indicator of the Reserve Bank of India (RBI) for
policy purposes, was seen at 4.2% - the lowest in 14 months –
on the back of lower food inflation. Consequently, there were
expectations of a cut in the Repo Rate by the RBI in its policy
revision in December, which however, did not take place given
the slowdown in economic activity. According to the 2016 Global
Retail Development Index, which ranks top 30 developing
countries for retail investment worldwide, India has jumped 13
positions from last year to rank 2nd. The organised retail space
(malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class,
coupled with the opportunity to list retail assets under REITs.
Market OverviewSteady demand coupled with no supply leads to decline in
vacancy. The city did not witness addition of any new mall
during the quarter. Overall vacancy reduced by 0.5 percentage
points and stood at 4.5% during the quarter due to moderate
leasing activity. Leasing activity in malls was driven by apparel
brands such as Arrow, Little Shop, Club SP (Satya Paul), Hush
Puppies and Spencers in the hyper-market category during the
quarter.
Mall rents across all submarkets maintained status quo.
Despite low availability, mall rentals across all submarkets
remained stable during the quarter as transactions were
executed at ongoing market rates. Malls witnessed an increase
in enquiries for large spaces by departmental stores, which were
planning to expand. However, these could not be executed due
to limited availability of such large spaces in malls in the city.
Main street rentals remained unchanged due to stable
demand. Designer apparels, as well as beauty & wellness
retailers such as Ritu Kumar and Cocktail Thai Spa were some
of the retailers that leased spaces at main streets of Ballygunge
and Elgin Road during the quarter.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: CSO, RBI, Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Park Street 500 85 88 0.0% 0.0%
Camac Street 450 76 80 0.0% 0.0%
Lindsay Street 400 68 71 0.0% 0.0%
Elgin Road 320 54 57 0.0% 0.0%
Theatre Road 200 34 35 0.0% 0.0%
Gariahat 200 34 35 0.0% 0.0%
Shyambazar 140 24 25 0.0% 0.0%
Hatibagan 140 24 25 0.0% 0.0%
Kankurgachi 200 34 35 0.0% 0.0%
VIP Road 90 15 16 0.0% 0.0%
MALLS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
South Kolkata 300 51 53 0.0% 0.0%
East Kolkata 400 68 71 0.0% 0.0%
Rajarhat 100 17 18 0.0% 0.0%
Elgin Road 600 102 106 0.0% 0.0%
Park Circus 600 102 106 0.0% 0.0%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
Retail Snapshot Q4 2016KOLKATA, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
OutlookMall rentals likely to remain stable during the next quarter.
Mall rentals are expected to remain range-bound across
submarkets due to steady demand from retailers.
Development of a new mall in Dum Dum area of north Kolkata is
in the planning stage. Currently, Dum Dum does not have any
organized retail development.
Leasing in main street locations to drive retail leasing in the
next quarter. Retailers, especially in the F&B and apparel
categories, are likely to prefer main streets due to limited
availability of space in malls. However, rentals are likely to
maintain status quo in the next quarter, due to adequate
availability of space in main streets.
SIGNIFICANT PROJECTS UNDER CONSTRUCTION
Property Location Square Feet Completion Date
Downtown Rajarhat 300,000 Q2 2017
V Mall Rajarhat 300,000 Q1 2018
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Acropolis Mall Rajdanga Main Rd Spencers 9,000
Acropolis Mall Rajdanga Main Rd Time Zone 6,500
Mani Square EM Bypass Arrow 1,200
Standalone Elgin Road Ritu Kumar 1,500
Siddhart GoelSenior Director Research Services, India
Tel: +91 80 40465555
Retail Snapshot Q4 2016MUMBAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter. Despite
a short-term blip caused by the recent currency demonetization, a
normal monsoon season and impending pay hikes for
government employees are likely to spur a recovery in consumer
sentiments. In October, the Consumer Price Index (CPI), a key
price indicator of the Reserve Bank of India (RBI) for policy
purposes, was seen at 4.2% - the lowest in 14 months – on the
back of lower food inflation. Consequently, there were
expectations of a cut in the Repo Rate by the RBI in its policy
revision in December, which however, did not take place given
the slowdown in economic activity. According to the 2016 Global
Retail Development Index, which ranks top 30 developing
countries for retail investment worldwide, India has jumped 13
positions from last year to rank 2nd. The organised retail space
(malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class,
coupled with the opportunity to list retail assets under REITs.
Market OverviewMarginal dip in mall vacancies with no supply addition. The
quarter did not witness any fresh mall supply, after supply infusion
of nearly 0.9 msf, over the last two quarters. However, overall
mall vacancy for the city declined marginally and stood at 16.2%
at the end of the quarter, on the back of limited leasing activity
confined to select submarkets of Kurla and Kandivali.
International apparel and fashion accessories retailers such as
Forever 21, Sephora, etc. continued to expand their footprint in
malls.
Main streets remain active. The main streets of Lower Parel,
Bandra-Kurla Complex (BKC) and Linking Road witnessed active
leasing from retailers in the F&B and apparel segments. Some of
the prominent F&B outlets that opened during the quarter include
Mr.Baozi (Juhu and Lower Parel) and Beer Café (Lower Parel).
Rental values largely remained stable across most malls and
main streets. Owing to sufficient availability of space in existing
malls, rental values remained stable across most of malls during
the fourth quarter. Rental values declined by 2-3% on the main
street of Colaba Causeway as landlords closed deals at lower
than average market rates (as demand dipped post the recent
demonetisation move). Rentals across other prominent main
streets remained stable owing to steady demand.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: CSO, RBI, Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Linking Road 760 129 134 0.0% 1.3%
Kemps Corner/
Breach Candy430 73 76 0.0% 1.2%
Colaba
Causeway620 105 110 -2.4% 3.3%
Fort Fountain 385 65 68 0.0% 10.0%
Lokhandwala
Andheri400 68 71 0.0% 0.0%
Borivali LT Road 400 68 71 0.0% 0.0%
Chembur 375 63 66 0.0% 0.0%
Vashi 350 59 62 0.0% 0.0%
Thane 250 42 44 0.0% 0.0%
Malls
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Lower Parel 820 139 145 0.0% 2.5%
Link Road
(Andheri W)400 68 71 0.0% 0.0%
Malad 460 81 78 0.0% 0.0%
Goregaon 460 81 78 0.0% 2.2%
Kandivali* 200 35 34 0.0% 0.0%
Kurla* 190 34 32 0.0% 2.7%
Ghatkopar 300 53 51 0.0% 0.0%
Bhandup-Mulund 140 25 24 0.0% -3.4%
Vashi 350 62 59 0.0% 0.0%
Thane 260 46 44 0.0% 0.0%
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
*Newly Added in 2015
Retail Snapshot Q4 2016MUMBAI, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart GoelSenior Director
Research Services, India
Tel: +91 80 40465555
OutlookLeasing activity to rebound. Leasing activity is expected to
pick up pace in malls with expected entry/ expansion of lifestyle
retailers. At the same time, F&B players are expected to continue
leasing in select main streets of Kamala Mills and Linking Road.
Mall and main street rentals to remain largely range-bound.
Rental values across most malls and main streets are expected
to remain stable in the first quarter of 2017. Malls in Lower Parel
and main streets of Fort / Fountain and Linking Road would
continue to be the preferred locations amongst international
retailers.
SIGNIFICANT PROJECT UNDER CONSTRUCTION
Property Location Square Feet Completion Date
Grand Central Seawoods Navi
Mumbai
1,100,000 Q1 2017
Reliance Mall Bandra Kurla
Complex (BKC)
300,000 Q4 2017
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Phoenix Market City Kurla Forever 21 10,000
Growel Mall Kandivali Croma 10,000
Individual Property Fort Adidas 4,000
Retail Snapshot Q4 2016PUNE, INDIA
MARKETBEAT
www.cushmanwakefield.com
EconomyThe GDP growth of India for the July-September quarter was
recorded at 7.3%, up from 7.1% in the preceding quarter.
Despite a short-term blip caused by the recent currency
demonetization, a normal monsoon season and impending pay
hikes for government employees are likely to spur a recovery in
consumer sentiments. In October, the Consumer Price Index
(CPI), a key price indicator of the Reserve Bank of India (RBI) for
policy purposes, was seen at 4.2% - the lowest in 14 months –
on the back of lower food inflation. Consequently, there were
expectations of a cut in the Repo Rate by the RBI in its policy
revision in December, which however, did not take place given
the slowdown in economic activity. According to the 2016 Global
Retail Development Index, which ranks top 30 developing
countries for retail investment worldwide, India has jumped 13
positions from last year to rank 2nd. The organised retail space
(malls) in India has seen high investment activity this year as
investors are bullish about the prospects of this asset class,
coupled with the opportunity to list retail assets under REITs.
Market OverviewLimited leasing activity in malls; marginal decline in
vacancy levels. The quarter was marked by limited leasing
activity, with leasing concentrated in malls in Koregaon Park and
Hadapsar. The leasing activity was dominated by food &
beverage (F&B) retailers with brands such as Subway and
Burger King expanding their footprint in the city. Amidst no fresh
supply and subdued leasing, vacancy rate declined marginally to
19.5% at the end of December 2016.
Mall rentals remained consistent. Mall rental values remained
stable during the quarter due to sluggish leasing activity and
sufficient availability in existing stock.
Moderate leasing activity in main streets; rental values
remained stable. Moderate leasing activity was witnessed in
prime main streets at F.C. Road and M.G. Road, driven by F&B
and lifestyle retailers. Rental values across all main street
locations maintained their status quo except in Aundh, where
they corrected by 3% quarter-on-quarter (q-o-q) due to
competitive pressure from a recently launched mall in the vicinity.
ECONOMIC INDICATORS
National 2014 2015 2016F
GDP Growth 7.0% 7.2% 7.5%
CPI Growth 6.6% 4.9% 5.4%
Private Final Expenditure Growth 6.8% 6.2% 7.6%
Govt. Final Expenditure Growth 3.1% 5.5% 11.7%
Source: CSO, RBI, Oxford Economics
PRIME RETAIL RENTS – DECEMBER 2016
MAIN STREETS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
M.G. Road 320 54 57 0.0% 0.0%
J.M. Road 370 63 65 0.0% 0.0%
F.C. Road 250 42 44 0.0% 0.0%
Koregaon Park 120 20 21 0.0% 0.0%
Aundh 165 28 29 -2.9% -8.3%
Bund Garden Rd 140 24 25 0.0% 0.0%
Mumbai-Pune
Highway –
PCMC
120 20 21 0.0% 4.3%
MALLS
INR
SF/MTH
EURO
SF/YR
US$
SF/YR
Q-O-Q
Change
Y-O-Y
Change
Camp 215 36 38 0.0% 0.0%
Koregaon Park 135 23 24 0.0% 0.0%
Nagar Road 250 42 44 0.0% 0.0%
Hadapsar 180 30 32 0.0% 0.0%
PCMC
Aundh*
190
230
32
39
34
41
0.0%
0.0%
0.0%
NA
Note: Asking rent (INR/sf/month) on carpet area of ground floor Vanilla stores is quoted
Conversion Rate: US$1= INR 67.85 and Euro 1 = INR 70.91
PCMC denotes Pimpri Chinchwad Municipal Corporation
*Newly added in Q2 2016
Retail Snapshot Q4 2016PUNE, INDIA
MARKETBEAT
www.cushmanwakefield.com
About Cushman & WakefieldCushman & Wakefield is a global leader in commercial real estate services, helping clients transform the way
people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and
global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield
is among the largest commercial real estate services firms in the world with revenues of $5 billion across core
services of agency leasing, asset services, capital markets, facilities services (branded C&W Services), global
occupier services, investment management (branded DTZ Investors), tenant representation and valuations &
advisory. To learn more, visit www.cushmanwakefield.com or follow @Cushwake on Twitter.
Copyright © 2017 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from mult iple sources considered
to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.
Siddhart Goel
Senior Director
Research Services, India
Tel: +91 80 40465555
OutlookLeasing activity in malls expected to strengthen; rentals
anticipated to appreciate in select submarkets. Owing to
increased enquiries from lifestyle retailers for space in malls in
Aundh, leasing activity is expected to strengthen during the
upcoming quarter. Hence, Aundh may witness slight appreciation
in mall rental values. However, rental values in all other
submarkets are expected to remain stable.
Main street rentals likely to soften at select submarkets. Main
street rentals at Aundh are likely to soften in the upcoming quarter
owing to competitive pressure from malls in the submarket.
Rentals in all other main street locations are expected to remain
consistent.
SIGNIFICANT PROJECT UNDER CONSTRUCTION
Property Location Square Feet Completion Date
My MallSenapati
Bapat Rd350,000 Q3 2017
Elpro Mall PCMC 400,000 Q1 2018
SIGNIFICANT LEASING TRANSACTIONS
Property Location Tenant Square Feet
Standalone Building F.C. Road Pizza Hut 3,000
Amanora Town
Centre MallHadapsar Burger King 2,500